Pole of global growth

ECA

African countries must pursue structural transformation to sustain growth, create jobs and reduce vulnerability to external shocks, says a United Nations report released today, while another publication urges governments on the continent to do this in a way that protects the environment.

Rob Vos, UN Economic Commission for Africa (ECA)

The Economic Report on Africa 2012, produced by the UN Economic Commission for Africa (ECA) and the African Union, notes that African economies quickly rebounded from the 2008 financial crisis as commodity prices rose and export revenues returned to pre-crisis levels, enabling them to finance the necessary investments.

Turmoil in North Africa and the euro area crisis combined to slow growth in 2011, but despite uncertainties some African countries have grown at double digits, reflecting higher commodity prices and strong domestic demand, it adds.

Entitled “Unleashing Africa’s Potential as a Pole of Global Growth,” the report states that Africa’s governments need to push through growth-promoting macroeconomic policies in the short run, while adopting long-term development strategies. Specifically, they should increase investments in high-quality education, health and infrastructure that can enhance long-term growth potential.

“In the long-term, African countries must vigorously pursue economic diversification and structural transformation to moderate negative external shocks from the euro debt crisis or volatility in commodity prices (or both) and provide decent jobs for African men and women,” states the report.

In addition, they should intensify efforts to diversify their export destinations, expand economic partnerships, including those with emerging economies, and deepen intra-Africa trade and investment. Crucially, though, Africa can grow faster and become “a global growth pole” by unleashing its productive potential through aggressively investing in infrastructure and human capital, says the report.

Comments

Loading comments ...